How Much Should You Be Paying for IT Services?

price of IT services

How Much Should You Be Paying for IT Services?

Companies need to find IT services that match their budget. It’s important for businesses to make sure they don’t compromise IT quality when only comparing costs. But with many similar IT options available, it can be hard to tell the difference. 

If you’re looking to get a managed service provider, then here are some of the things you should know.

MSPs Guard Their Prices

Why don’t managed IT providers publish their pricing on their websites? There are a few key reasons. 

MSPS want to ensure clients hear the full pitch to understand services offered rather than making premature decisions based only on cost. In addition, competitors can take advantage of public pricing information. 

Established MSPs charge around the same price per month with their services. However, not all MSPs are established. Often, multiple IT companies will claim to offer full-services when their services, and quality of services, differ significantly.

Types of Managed Service Providers

There are four types of MSPs that are worth knowing about: 

Amatuer consultants, sometimes called trunk slammers, have little experience and few clients. Their operations usually consist of a small number of employees who primarily install software, but offer minimal expertise. Value MSPs are a slightly bigger organization. They bring in clients by providing a more affordable service than most, which includes break-fix and hourly options. Their limited experience in business technology limits their client portfolio. 

Bolt-on MSPs are usually part of a core business different from IT service and offer supplementary service rather than comprehensive strategies. They start with low prices but continually increase costs with add-ons. Finally, mature MSPs are providers with at least 10 years of service, an extensive portfolio, and client referrals. They are likely to offer the best quality for cost in all areas of their services that they provide.

Most mature MSPs won’t share their pricing because of other types of MSPs out there. Other types may try to do the same thing to give the appearance that they’re equally qualified.

The Current Price of IT Services

In the US, the cost of services in 2020 generally begins around $100-$150 per person per month. This can increase to $200-$250 per month per person with additional advanced security solutions and consultancy options. Additional licensed services, such as Microsoft 365 and cloud services, will require separate costs.

No matter whether companies bill per person or flat fee, the total monthly cost is usually similar between mature MSPs. Be careful of deals and discounts that are significantly lower—it’s often a sign of a lower-level MSP that is desperate for new clients.

Comparing MSPs

Most mature MSPs will likely review your business technology environment before pricing. That’s a good sign that they’re taking the time to fit a plan that suits your needs the most. When comparing MSPs, be sure to ask as many questions as possible to find the right one for your needs. 

Make sure to ask questions about the business maturity, industries they are experienced in, and whether they can send client referrals. Get in writing a breakdown of the package services so you know what you’re getting. It’s a good idea to ask about response times when contacting the help desk, and if the company offers security training for users.

Managed IT services are important for your business, so it’s worth doing the legwork to make sure you offer the greatest benefit for the cost of IT services.